Ex-Tesla Manager’s Chip Aims to End Luxury Fakes

Luci Holland, a former product manager at Tesla, has started a company called Veritas to stop counterfeit luxury goods. She embeds small chips into items like handbags and watches. These chips use near-field communication, or NFC, so people can tap a smartphone to check if the product is real. The goal is to make fakes too hard to create or sell. Veritas says the chips cannot be fooled by tools like Flipper Zero, which hackers use on wireless systems. Each chip ties to a digital certificate that proves the item's history.

Background

Counterfeit goods cost the world trillions of dollars each year. Luxury brands lose billions because fake handbags, watches, and shoes flood markets. Buyers often cannot tell real from fake, even with tags or holograms. Resale sites and stores face returns and lawsuits over fakes. Brands spend heavily on security features, but criminals keep finding ways around them.

Holland brings skills from Tesla, where she managed products and supply chains. There, she learned to verify parts from suppliers worldwide. Tesla cars mix hardware and software tightly, much like her new system. She also has a background in art, including painting and metal work. This mix helps her design chips that fit into luxury items without ruining their look.

Veritas formed recently and raised $1.75 million in early funding. Investors include Alexis Ohanian from Seven Seven Six, Stanley Tang from DoorDash, Gloria Zhu from Reys skincare, and Josh Constine, a former TechCrunch editor. The money will grow the two-person team and test the tech with brands.

"For me, as someone who has a background in being a designer and then also has experience in tech, I saw this problem and thought about the different ways we could solve it." – Luci Holland, Veritas founder

Holland sees old brands, some over 150 years old, needing better protection for their designs.

Key Details

The chip is tiny, about the size of a small gem. Designers can sew it in, mold it, or add it after making the product. It uses NFC, the same tech as contactless payments on phones. A tap sends a signal, and the chip replies with proof it is real.

How the Chip Stays Secure

Unlike basic tags, this chip has a secure element inside. It resists probes and attacks. A custom coil and bridge act like a tripwire. If someone tries to remove or tamper with it, the chip shuts down and hides its codes. Cryptographic keys form during making, in a safe spot. They never leave the chip fully, so copying fails.

When tapped, the chip and Veritas servers do a challenge-response check. Each time gives a new code, so replays do not work. The server tracks scans for odd patterns, like one item in two places at once or too many checks from one phone. Brands control what info shows, like ownership history or stories.

Veritas claims no bypass by Flipper Zero or similar tools. Those work on weak wireless systems, but this setup blocks them. The company tested with designers to keep chips hidden and strong.

Tools for Brands

Brands get software to track chipped items. They add staff, details, and stories. Some use it for customer perks, like invites or early drops. A blockchain twin lets items appear in digital galleries or virtual worlds.

Pilots run with unnamed luxury brands. Full rollout comes later this year. Costs run a few dollars per chip at scale, fine for high-end bags but tight for cheaper shoes. Veritas works on thin, flexible versions for more items.

What This Means

If Veritas works, counterfeiting gets harder. Fakes lose value without passing checks. Buyers gain trust on resale sites. Brands cut losses from fakes and build loyalty with easy verifies. Insurance firms may use it to value items.

Challenges remain. Brands must change making processes. Costs add up for low-end luxury. Buyers need to learn tapping. Criminals may find new tricks, starting an arms race. Education matters, as many NFC tags clone easily. Veritas pushes for safer tech.

"It is shocking to see that some off-the-shelf solutions, like NFC chips that brands are using, are actually so vulnerable and could easily be bypassed." – Luci Holland

Success depends on brand buys and real-world tests. Early interest from tech and fashion points to promise. Resale platforms eye it for fewer disputes. The system could spread beyond luxury to art, collectibles, or drugs. For now, Veritas sets a new bar in the fight against fakes. Brands watch closely as pilots roll out.